GRE Renew Enertech Ltd IPO

The company may be unable to accurately estimate costs under fixed-price EPC contracts, fail to maintain the quality and performance guarantees under its EPC contracts, The company may experience delays in completing the construction of solar power projects, which may increase its construction costs and working capital requirements and thus may have a material adverse effect on the company financial condition, cash flow and results of operations.

The company operates in a competitive industry and as such its may not be successful in bidding for and winning bids for solar power projects to grow the company business at national level, which may have a material adverse effect its business, financial condition, results of operations and prospects.

The company has projects mainly concentrated in one state - Gujarat. Any geographical disturbance in Gujarat can heavily adversely affect its business.

The company business operations relies on consistent solar weather conditions and unfavourable solar weather conditions could have a material adverse effect on its business, financial condition and results of operations.

The company, inter-alia, bid for projects funded by the Central and State Governments and derives its revenues from the work orders awarded to the company. Any reduction in budgetary allocation to its industry sector may affect the number of projects that the government authorities/bodies may plan to develop in a particular period.

The company relies on its in-house designing and engineering team for project execution.

The company Order Book may not be representative of its future results and the company actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company results of operations.

Delays in the completion of current and future projects could lead to termination of engineering, procurement and construction ("EPC") agreements or cost overruns, which could have an adverse effect on the company cash flows, business, results of operations and financial condition.

The Objects of the Issue for which funds are being raised, are based on the company management estimates and any bank or financial institution or any independent agency has not appraised the same.

The company has experienced negative operating cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.